CFTC Cites Commodity Trading Firm for Lacking Supervisory Procedures to Detect and Deter Disruptive Trading

Supervision of employees is a fundamental compliance obligation. In a settled administrative proceeding, the CFTC alleged that a commodity trading firm had failed to supervise an employee who placed an unusually large trade during the final minutes of trading on the last trading day of the year, causing a spike in the price of that commodity. This article describes the circumstances and trading that gave rise to the proceeding and the alleged compliance failures. See “CFTC Enforcement Report Reflects Strong Focus on Digital Assets” (Dec. 22, 2022).

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